Odds of approval? Chase Freedom/United Plus Mileage Explorer

[Anonymous]

Hello all,

I am new to this site, and have recently taken an interest in my credit.  I am 27 years old and have managed with a simple Chase debit card all these years, but have decided that I should probably grow up and establish some credit history with a credit card.  I have never had a loan other than student loans, which are pretty substantial ($100,000+), but I have never had a late or missed payment in the six years that the loans have been open.  About three months ago I applied for the Chase Sapphire Preferred card because I do a fair amount of international travel for work, but was declined with FICO EQ 700, TU 700  and EX 713 scores for insufficient credit history.  I knew I was shooting rather high with the Sapphire, but took the chance anyways which brings me to today....

I was at my Chase branch today and my personal banker suggested that I apply for the Freedom card because of the rewards perks and its acceptance rate vs. the Sapphire.  I ran my  score this afternoon and pulled an EQ FICO of 747.  I am interested in applying for the Freedom card, but due to travel rewards, the United Plus Mileage Explorer card is more enticing to me.  Would it be a bad idea to apply for either of those cards within 3 months of a declined Sapphire application? What are my chances of getting approved for either card with my credit score/somewhat limited credit history?  Do you guys suggest any other cards for me based on my credit profile?  I am not stuck on Chase cards, but prefer a Visa.  

Thanks!

[Cdnewmanpac]

You should apply for the Freedom for sure. Here's why: With your banking history at Chase and your scores, the freedom is a solid bet for approval, even with a thin file. It has some pretty good rotating rewards categories and you will be building credit history with Chase. But here is the best part: In a year, you should reapply for the sapphire preferred. At that point, assuming you don't do anything bad, you will have a high chance of approval. Once approved, all the points you earned (but didn't redeem) on your Freedom can now be combined with your sapphire preferred UR points. This means you can convert them to United miles (or any of the airlines listed on their site), use them to purchase tickets through UR, etc. You can also read about the triple play strategy involving the CPS, freedom and checking from Chase on these forums. 

I think you should skip the United Explorer for now. First, your chances of approval aren't as good as the Freedom. But more importantly, you need to look long term. The explorer charges foreign transaction fees. The CSP doesn't. For international travel, this is a big deal. It pretty much wipes out any reward value using the card overseas would have. Plus, the Explorer only earns United miles. A year from now, you will be better off having had the Freedom for a year, then adding the CSP vs getting both the Freedom and Explorer now or just the Explorer.

Finally, you should ideally have 2-3 cards to maximize your score and appeal to lenders. You also want a card with zero foreign transaction fees. You also have a thin file. I know a lot of people complain about Capital One on this forum, but I really think they are a great choice for you for a 2nd card. You can go to their site and click on the preapproval link to see what you are approved for. ALL of their cards have no foreign transaction fees. Yes, you are likely to get a small limit that doesn't grow over time. But you only need this card for a year or so. By then, you should qualify for the sapphire preferred and then you can close the Capital One if you aren't satisfied. But in the meantime, the savings in foreign transaction fees (if, as you say, you do a lot of international work) will more than offset any annual fee and you will be building credit. 

Others may mention Discover, which also has no FTFs, but it won't have the broad international acceptance that a Cap1 visa or mc will have. So I'd get a Freedom and a Cap1 card, use them both wisely for a year, then get the sapphire preferred, keep the Freedom, keep or ditch the Cap1 and at that point, you should be approvable for just about any card your heart desires.

[bettercreditguy1]

Trust your banker. Since you are a Chase Customer, you have one feather in your hat. Freedom is not only a great card, if you take care of it you can probably get a Saphire in a year or less. The major item is lack of credit card payment history. You are missing that. Chase is also generous on cli increases for valued customers.  I went from          $1000. to $10,000 in two months with Chase and the Freedom Card. So begin now. Your scores are good enough that you do not need an off the wall or starter card. Good luck on your new journeys!   PM me if you want.

[Anonymous]

Hey guys, thanks for the thoughtful replies!  You both bring up some great points about the Freedom card, I am going to apply for it this weekend and let you know how it goes.  Based on your advise, I went to Capital One's site today and discovered that I was prequalified for the VentureOne Rewards card.  Should I apply for the Freedom card first, or does it not matter?  Does it look bad if I apply for two cards in a short amount of time?  Would you recommend any other Cap1 cards?

Thank you!

[charyot77]

The annoying thing about applying on the weekend is that if you cant to call for a recon, you'll have to wait until Monday to talk to any CSR who work on the backdoor lines.

I would recommend applying before the weekend.

[improvingmycredit]

Hi!!  Welcome to the Forums!  

Based on your bankers advice, I'd definitely app the Chase Freedom.  It's a good card that will likely give you a decent starting limit if you have a good income regardless of your thin file.  If you decide to app the CapOne Venture card, app it last as they will pull all 3 CRAs.  I'd also recommend apping the Amex Zync.  It's a charge product but you will more then likely go to a really high internal limit with use to give you some buying power if you need it if approved.  I think your chances with Zync are higher then the Venture card. Wait a year and with luck, you'll have some experience with a 5K limit card to get that Sapphire you want.  With regards to the Freedom- google Freedom cashback offers and app the offer for  $100 cash back so at least you start with a little cash back to begin with.  I'd app before the weekend.  Good Luck!  Just my 2 cents.

[Cdnewmanpac]

Agree with others: freedom first, then cap 1. Venture one is a great card for you. No annual fee and no foreign transaction fee. You could also look at the cap 1 cash rewards version with no annual fee, but only if you are also preapproved. Otherwise, take the one they offered (venture one) and move on. Use freedom for rotating categories and venture one for overseas. 

[improvingmycredit]

I think you should know that the likelihood of an approval with the Venture card is unlikely.  It is a very difficult card to get but because you have a ore-approval, there is a slightly better chance.  Your score is good enough but again, you have no experience with a 5K limit and this is a siggy card.  Pre-approvals are not a guarantee of approval thus app this card last if you decide to app it.  It's on par with the Sapphire.

[Anonymous]

Hey guys,

So I applied for the Freedom this morning and got the dreaded "Your application needs further review" message.  When I called the backdoor number, the service rep said my application was denied due to low available credit and balances over the limit because of my student loans.  I explained to her that I have never had a late or missed payment in 6 years of my loans and that some of them where with Chase.  She said she would reconsider, asked me a few questions about my employment and address and approved me for a low $1000 limit to start off with.  It is a start, so I am happy that I have an adult credit card now

How long should I wait to apply for a Cap1 or AmEx Zync card?

Thanks!

[jamesdwi]

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@Anonymous wrote:

Hey guys,

So I applied for the Freedom this morning and got the dreaded "Your application needs further review" message.  When I called the backdoor number, the service rep said my application was denied due to low available credit and balances over the limit because of my student loans.  I explained to her that I have never had a late or missed payment in 6 years of my loans and that some of them where with Chase.  She said she would reconsider, asked me a few questions about my employment and address and approved me for a low $1000 limit to start off with.  It is a start, so I am happy that I have an adult credit card now

How long should I wait to apply for a Cap1 or AmEx Zync card?

Thanks!

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After your card hits your report, you can AP for cap1 if you want a low limit rebuilder card. Wait 3 years if you want there prime cards, really not worth it.  For amex Zync or charge cards wait 6 months. For a AMEX revolver you need a year of experience on 2 or more cards. Perhaps apply for a GE backed card after your chase card starts report maybe wait 2-3 months. The walmart card is good, free TU score (for going paperless), and good CLI's ever 4 months. If you get lucky with your score you may even get the Discover version. The Amazon store card is good if you shop for them, 0% interest for 6 or more months with a $150 purchase.